Choice of Ofto ‘must be impartial’

Under the new enduring offshore transmission regime, neither the national transmission system operator nor offshore wind developers should play a part in evaluating tenders by third parties to build links.
That is the view of Transmission Capital Partners (TCP), the consortium that has won the lion’s share of bids to own and operate links under the current transitional regime. It said that was because bids could not be anonymised and neither the national transmission system operator nor the developer would be impartial – because both may want to build the link themselves.
TCP managing director Chris Veal told a stakeholder event last week that potential offshore transmission owners (Oftos) must be involved at the earliest opportunity, a view shared by marine engineering giant Technip. Otherwise, said David Hodkinson, vice president of UK business delivery, there was a risk of missing “optimisation opportunities”.
Veal said developers should carry out seabed and site surveys to reduce the costs of bidders doing the work individually, and that any survey errors could be passed back by the successful bidder. He said the Ofto should then be able to procure everything to deliver more flexible designs, contract structures and lower costs.
Ofgem’s consultation on the tender exercises closed this week.

 

This article first appeared in Utility Week’s print edition of 17 February 2012.
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